The Nigerian naira took another hit in the parallel market, falling to a staggering 1,750 pesos against the US dollar following the release of strong employment data from the United States.
The decline was in direct response to the U.S. non-farm payrolls (NFP) report, which showed a stronger-than-expected labor market, which strengthened the dollar globally and put significant pressure on the naira.
Why your savings are at risk:
Analysts have warned that if the Central Bank of Nigeria (CBN) does not intervene soon, the naira could depreciate further, pushing up the cost of imported goods, fuel and food across the country.
fact: naira blow ₦1,750 Today’s parallel market.
reason: Fed expected to keep interest rates high as U.S. adds 66,000 jobs (Exceeds expectations). This makes the dollar the “king” and crushes the naira.
Experts warn: Financial analysts (SBM Intelligence) have warned that the CBN prioritizes “stability” over “appreciation”, meaning don’t expect the naira to strengthen anytime soon.
“Juicy” details: Foreign exchange reserves hit 8-year high $46 billionbut the CBN is “defending” the currency, not allowing it to appreciate.
